“For most of its 3,500 years of history, China led the world in agriculture, crafts, and science, then fell behind in the 19th century when the Industrial Revolution gave the West clear superiority in military and economic affairs,” write the editors of the 1999 CIA World Factbook. As the 21st century begins, the country is beginning to modernize its economy, and in the process, is lifting millions of Chinese out of poverty. China is once again taking its place among the world’s great powers.

Still, China faces many challenges. For example, the nation’s move from an agricultural-based economy to an industrial one is causing enormous environmental problems. In addition, many Chinese are being left behind as China’s economy is transformed: From 60 to 100 million surplus rural workers are adrift between the villages and the...